Valadao Wants Answers on Slow Roll of Pandemic Tax Credits. Scam Protection, IRS Says. - GV Wire - Explore. Explain. Expose
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Valadao Wants Answers on Slow Roll of Pandemic Tax Credits. Scam Protection, IRS Says.

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Congressman David Valadao wants to know why special IRS pandemic-era tax credits are taking so long to reach small businesses. (GV Wire Composite/Paul Marshall)
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Congressman David Valadao wants to know why special pandemic-era tax credits are taking so long to reach small businesses.

The federal Employee Retention Tax Credit — ushered in during the pandemic — was meant to help small businesses retain employees. The program’s aim was for businesses to keep paying employees, whether the company stayed open or not.

Valadao, R-Hanford, says the IRS “has experienced significant issues with the processing of legitimate ERTC claims.”

Last September, the IRS issued a moratorium through at least the end of last year “following growing concerns … that a substantial share of new claims from the aging program are ineligible and increasingly putting businesses at financial risk by being pressured and scammed by aggressive promoters and marketing.”

Radio and television ads from marketers and others claiming that businesses can reap windfalls in ERTC credits via their guidance continue to flood the airwaves.

Valadao sent a letter on Tuesday to IRS Commissioner Daniel Werfel, wanting to know why legitimate claims are not being processed.

“While I am pleased with the agency’s focus on identifying potentially fraudulent claims and investigating bad actors, I am concerned that honest small business owners, many of whom have made financial decisions based on the availability of this tax credit, have been kept in the dark about the status of the ERTC program,” Valadao wrote.

Responding to a GV Wire request, the IRS sent several news release links about the program and moratorium. Existing ERTC claims, the IRS said, would take 90 to 180 days to process.

“The IRS is increasingly alarmed about honest small business owners being scammed by unscrupulous actors, and we could no longer tolerate growing evidence of questionable claims pouring in,” Werfel said last September.

Business Groups Applaud Valadao’s Action

Several Central Valley business groups supported Valadao’s efforts in asking the IRS why issues remain with processing ERTC claims.

Clint Olivier, CEO of Central Valley BizFed, applauded Valadao for “fighting for the interests” of the district.

“What the Congressman is trying to do is to get the IRS to show some accountability. And if they are held accountable, it will benefit the business owners and everyone else here in the Central Valley,” Olivier said.

Scott Miller, CEO of the Greater Fresno Chamber of Commerce, said several members benefited from the ERTC.

“The ERTC has been over the past couple of years, a real lifeline in the aftermath of COVID,” Miller said.

Curiosity drives David Taub. The award-winning journalist might be shy, but feels mighty with a recorder in his hand. He doesn't see it his job to "hold public officials accountable," but does see it to provide readers (and voters) the information needed to make intelligent choices. Taub has been honored with several writing awards from the California News Publishers Association. He's just happy to have his stories read. Joining GV Wire in 2016, Taub covers politics, government and elections, mainly in the Fresno/Clovis area. He also writes columns about local eateries (Appetite for Fresno), pro wrestling (Off the Bottom Rope), and media (Media Man). Prior to joining the online news source, Taub worked as a radio producer for KMJ and PowerTalk 96.7 in Fresno. He also worked as an assignment editor for KCOY-TV in Santa Maria, California, and KSEE-TV in Fresno. He has also worked behind the scenes for several sports broadcasts, including the NCAA basketball tournament, and the Super Bowl. When not spending time with his family, Taub loves to officially score Fresno Grizzlies games. Growing up in the San Francisco Bay Area, Taub is a die-hard Giants and 49ers fan. He graduated from the University of Michigan with dual degrees in communications and political science. Go Blue! You can contact David at 559-492-4037 or at Send an Email

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